Return to Transcripts main page

Early Start with John Berman and Zoraida Sambolin

Sanders: Democratic Convention Could Be "Messy"; Trump Versus Clinton: New Attacks; Obama Pushes Trade, Mends Old Wounds in Asia; The War on ISIS: Iraq Fights to Retake Fallujah. Aired 4:30-5a ET

Aired May 24, 2016 - 04:30   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

(COMMERCIAL BREAK)

[04:31:09] ALISON KOSIK, CNN ANCHOR: The race for president getting even uglier. Hillary Clinton and Donald Trump unleashing stinging new attacks as Bernie Sanders delivers a new warning about what could happen at the Democratic convention.

GEORGE HOWELL, CNN ANCHOR: Happening now, President Obama pushing for better trade in Asia overnight, touching on old wounds that have divided the world for decades. We are live with what the president had to say.

KOSIK: Iraqi forces claiming early victories in a major assault on ISIS. U.S. forcing backing them in the battle. New developments ahead.

Welcome back to EARLY START. I'm Alison Kosik. Good morning.

HOWELL: And I'm George Howell. Thirty-one minutes past the hour.

And new this morning, Senator Bernie Sanders is vowing to stay in the race even if it means a messy Democratic convention. Sanders' defiance comes as Hillary Clinton looks right past her primary challenger toward Donald Trump and toward the general election, pulling out of a debate in California that's planned for May. Sanders blasting Clinton's decision at a rally last night in Santa Monica.

CNN's Sunlen Serfaty was there.

(BEGIN VIDEOTAPE)

SUNLEN SERFATY, CNN CORRESPONDENT: George and Alison, as Hillary Clinton is increasingly her urgency a bit and calls for Democrats to unite before the general election, Bernie Sanders is digging in more. He is renewing his promise to take his fight all the way to the convention floor.

In an interview with "The Associated Press", he was asked about the potential for the Philadelphia convention to get messy, to which he replied, "So what? Democracy is messy." But then he added, he will, quote, "condemn and any all forms of violence." As he barnstorms the state of California, he seems to be taunting Hillary Clinton just a bit, saying he believes she is getting nervous at his chances going forward. Now, meantime, the Clinton campaign will not participate in the debate before the California primary in two weeks. A debate that Bernie Sanders has signed on for and he brought that up in the rally in Santa Monica.

SEN. BERNIE SANDERS (I-VT), DEMOCRATIC PRESIDENTIAL CANDIDATE: I was disturbed, but not surprised to hear a few hours ago that Secretary Clinton has backed out of the debate. I think it is a little bit insulting to the people of California, our largest state. That she is not prepared to have a discussion with me about how she will help the Californians address the major crises that we face.

SERFATY: And the Clinton campaign clearly turning their focus towards the general election again, says that they believe that their time right now is being better spent, campaigning and talking to voters and preparing for the general fight ahead -- George and Alison.

(END VIDEOTAPE)

KOSIK: OK. Sunlen Serfaty, thanks for that.

And the war between Hillary Clinton and Donald Trump intensifying with Trump firing off a low blow, releasing an Instagram ad on Monday where you hear the voices of two women who once accused Bill Clinton of sexual assault. Hillary Clinton for her part responding to the personal attacks. Instead, she blasted Trump from the campaign trail, saying if he becomes president, he could bankrupt the country.

(BEGIN VIDEO CLIP)

HILLARY CLINTON (D), PRESIDENTIAL CANDIDATE: Trump economics is a recipe for lower wages, fewer jobs, more debt. He could bankrupt America like he has bankrupted his companies. I mean ask yourself, how can anybody lose money running a casino? Really?

(END VIDEO CLIP)

HOWELL: So the war of words continues. Donald Trump back on the campaign trail, kicking off a tour of the West starting in New Mexico. He holds a rally tonight in Albuquerque. New Mexico has the highest proportion of Hispanics in the country, 48 percent. So, we will be watching to see what his past remarks about Mexicans has on his reception there.

Breaking overnight: Donald Trump clarifying his position on whether guns should be allowed in schools after Hillary Clinton accused him of wanting to mandate that every school in America allow guns in classrooms.

[04:35:12] Trump telling CNN by phone, quote, "I would end gun free zones in some cases. You would have people that would be properly trained. The way Clinton said it meant like every student should be sitting there carrying guns."

Meantime on Monday, Trump met with a Senate Republican who many are calling a potential running mate.

CNN politics reporter Sara Murray has more.

(BEGIN VIDEOTAPE)

SARA MURRAY, CNN POLITICS REPORTER: Donald Trump took one more step toward uniting the party on Monday, sitting down privately here at Trump Tower with Tennessee Senator Bob Corker. He is one of the top ranking Senate Republicans, and a bit of a foreign policy expert.

Now, Donald Trump and Corker met to speak with foreign policy. And Corker brushed aside any suggestion that they may have been talking about something else, perhaps the veepstakes.

SEN. BOB CORKER (R), TENNESSEE: I have no reason to believe I am being considered for a position like that. You know, I'll say that until I'm blue in the face. It's just -- I mean, this was a meeting between two people who didn't know each other except over phone calls, getting to know each other.

MURRAY: Now, even though Senator Corker has no reason to believe he is in the running for Trump's V.P., it's still early, and there are many possibilities. And a number of Trump allies tell me that Corker is the kind of candidate who could a little gravitas, especially on foreign policy to the Trump ticket. And all of this comes at a very opportune time from Donald Trump, when national polls show him neck and neck with Hillary Clinton and a much tighter race for the general than many pundits predicted.

Back to you.

(END VIDEOTAPE)

KOSIK: All right. Our thanks to Sara Murray there.

Happening right now, President Barack Obama continues his Asia pivot on his way to Ho Chi Minh City in southern Vietnam, more commonly known by Americans by its former name, Saigon. The president just finished a speech in the capital of Vietnam, Hanoi. That message there, stronger trade ties in the Far East, at the same time he tried to heal old wounds that have divided the U.S. and Vietnam for decades.

CNN's Alexandra Field is following it all live for us in Ho Chi Minh City this morning.

Good morning, Alexandra.

You know, we saw President Obama focusing on a host of issues, everything from security, he was pushing better trade. And he also didn't shy away from Vietnam's horrible human rights record as well.

ALEXANDRA FIELD, CNN CORRESPONDENT: Right, he was expected to take that on because that is part of the back drop of the trip. We know that human rights groups have widely criticized Vietnam for its human rights record. So, the president did spend a lot of time promoting human rights and talking about what he called shared values between the United States and Vietnam, like freedom of speech and freedom of assembly.

He went on to say that it's freedom of thought that fuels innovation, which fuels job creation, which boosts economies. We know this trip is about boosting the economic cooperation between Vietnam and the U.S. It's also about boosting security cooperation between Vietnam and the U.S.

So the president did speak on a wide range of topics in front of that audience in Hanoi. And he did address the conflict in the South China Sea. There has been concerns raised in neighboring countries here about China's claims of the territory there. The president laid out the U.S.'s position this morning. Listen to this.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: United States is not a claimant in current disputes. But we will stand with partners in upholding core principles like freedom of navigation and overflight, and lawful commerce that is not impeded, and the peaceful resolution of disputes through legal means in accordance with international law. And as we go forward, the United States will continue to fly, sail and operate wherever international laws allow, and we will support the right of all countries to do the same.

(END VIDEO CLIP)

FIELD: Those remarks come after the day of the banner moment of the historic trip when President Obama announced the U.S. would plan to drop its ban on arms sales to Vietnam. Now, some have suggested that is about countering China's growing strength in the region. The president reputed that and he said it's really about bolstering security cooperation between Vietnam and the U.S. So, that was another key point made in the speech. He did not mention China, but he did mention that conflict in the South China Sea.

He talked about everything from climate change, to human rights, which we touched, to also Vietnam's economic growth. But he really spent a lot of time speaking quite personally about what he termed to be the remarkable evolution of the relationship between Vietnam and the U.S. in the post war era. And he reflected on the fact he is not the first president from the U.S. to visit Vietnam in the post-war era but he did remark on the fact that he is the first president to come of age in this era, Alison.

KOSIK: All right. CNN's Alexandra Field, live from Ho Chi Minh City, thanks very much.

HOWELL: The TSA's top intelligence chief is out. The White House Oversight Committee announcing in a tweet, Kelly Hogan has been replaced.

[04:40:04] Hogan faced blistering criticism at a congressional hearing last month when three witnesses testifying he had no experience in the intelligence field, but somehow received a $90,000 bonus although security lines at the nation's airports were getting worse. KOSIK: Secretary of Veterans Affairs Bob McDonald is under fire for

downplaying the patient times at V.A. hospitals. He told reporters on Monday, delays experienced by veterans seeking medical care are a lot like delays facing guests at Disneyland waiting to get on rides. McDonald says he'd rather instead satisfaction with the experience rather than time spent waiting. Several prominent Republicans, including Donald Trump, are blasting McDonald this morning.

HOWELL: No one likes to wait.

The head of the IRS is declining an invitation to testify on Capitol Hill today for a hearing on whether he should be impeached over allegations that he misled congressional investigators. In a seven- page statement, Commissioner John Koskinen denies his agency prevented anyone from gathering information about IRS treatment or mistreatment of conservative groups. Koskinen says the claims are, quote, "without merit". He says he's been too busy to prepare to testify today, but is willing to appear at a future.

KOSIK: All right. Time for an early start on your money. We are looking at Dow Futures. They're in the green this morning. Stock futures in Europe, they are rising as well. Shares in Asia closing with losses overnight and we are seeing oil prices hold steady, just below $48 a barrel.

Are you looking to buy a house? Well, you're probably finding high prices and fewer choices. Zillow says home prices are up 4.9 percent over the past year. The median home value is now $187,000. Low inventories, stronger wage growth and super low mortgage rates are moving those numbers higher.

There are 3.4 percent fewer homes for sale in the U.S. than a year ago. And 7.8 percent fewer entry level homes in the market than this time last year. Looking at some cities, Denver, Portland, Dallas and San Jose with the biggest year over year increases, all up more than 12 percent.

Those markets have been the hottest metro areas in the country for the past few years. You know the median home value in San Jose sitting at around $964,000. And guess who you can tank for that, all the tech start ups putting that median home value, right up there almost to $1 million.

HOWELL: So, if you wanted to buy -- maybe you should have bought a couple years back?

KOSIK: Or have deep pockets.

HOWELL: Oh, there you.

Well, happening now, a major battle to free a critical Iraqi city from ISIS. U.S. forces helping in that fight. We are live with the very latest.

(COMMERCIAL BREAK)

[04:46:57] KOSIK: Welcome back.

The battle for Fallujah is raging this morning. Iraqi forces backed by U.S. airstrikes engaged in a fierce struggle to take back the city from ISIS. Fallujah is one of the last major strongholds for the terrorists in Iraq, liberating the city is expected to take time and lives.

CNN senior international correspondent Ben Wedeman is tracking the latest developments live from Rome.

So, what kind of progress are Iraqi military forces making in getting into Fallujah?

BEN WEDEMAN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, we understand that it's been several months now, of course, that the military and associated forces have surrounded Fallujah. Now, we understand that for instance, in the town of Garma, which is just outside of Fallujah, that they have been able to make progress towards it.

Now, we are also hearing this morning from Baghdad that Iraqi air force F-16 managed to bomb what they call a factory for the production of car bombs. And, of course, car bombs have been a problem in Baghdad. Certainly in the last several weeks, as many as 200 people being killed by car bombs in the Iraqi capital, which officials believe are indeed manufactured in Fallujah.

But it's going to be a long hard battle, keeping in mind that Fallujah has been controlled by ISIS since January of 2014. It was the first major city that the group was able to take control of. They've had two and a half years to build fortifications, tunnels, set up IEDs and other booby traps in that city. Now, according to Iraqi officials, they are somewhere between 500 and 700 ISIS fighters in Fallujah. But many of them, it's believed are Fallujan natives, so they have that local advantage and they know the terrain and, of course, they had the time to prepare for this offensive which everybody knew was coming.

It's just the only question was when it exactly it will happen. So, it's going to be a hard battle.

KOSIK: Ben, how much confidence is there if and when Iraqi forces get control of Fallujah that they can actually hold on to it? Because as you said, ISIS has held on to Fallujah for more than two years.

WEDEMAN: Well, once the Iraqi military and associated forces are able to take control of the city, there will probably inevitably be some more -- some surprise attacks and skirmishes. I mean, for instance, look at the case of Ramadi, another major city in Anbar province, like Fallujah, where the Iraqi army said it was able to take control of the city in December, late December.

But it took weeks for them to really get control to put an end to attacks on Iraqi forces. So, this inevitably takes time. We're talking weeks, if not months before the Iraqi army can say with finality that they have been able to crush ISIS in the city. [04:50:04] And let's keep in mind, there are Sunni, Iraqi Sunnis for a

number of reasons would prefer ISIS to the Iraqi government. So, it's not just a battle. It's a battle for hearts and minds as well. And that's a long term struggle -- Alison.

KOSIK: Certainly a very complicated and desperate situation there. CNN's senior international correspondent Ben Wedeman -- thanks so much.

HOWELL: The governor of Virginia, Terry McAuliffe, is under investigation. The FBI and the Justice Department are looking into the campaign donations received by the Democratic governor, to see whether laws were broken. CNN has also learned investigators are examining McAuliffe's time as a board member, with the Clinton Global Initiative. The charitable foundation set up by former President Bill Clinton is not accused of any wrongdoing.

KOSIK: A not guilty verdict in the second Freddie Gray trial. Officer Edward Nero sobbing in court after a judge rules there was no evidence to support any of the charges against him. This is the first complete acquittal among the six officers charged in the case.

Nero was one of the three cops on bicycles who arrested Gray 13 months ago. He put out a statement saying he and his family were elated by the verdict. The attorney for Gray's family also uploading the decision, saying the judge followed the law.

HOWELL: Well, Bill Cosby and his accuser could come face-to-face in court this morning. A pretrial hearing is scheduled for 9:30 Eastern Time in suburban Philadelphia to determine whether there is sufficient evidence to take the felony sexual assault case to trial. Andrea Constand claims Bill Cosby drugged her and assaulted her when she visited his home in 2004. Both are set to attend the hearing.

KOSIK: Stocks are certainly quiet yesterday. They seemed to be stuck in neutral. Will investors push the market out of the slump today? We're going to get an early start on your money, next.

(COMMERCIAL BREAK)

[04:56:07] HOWELL: Crews are up against the clock to locate the black boxes belonging to EgyptAir Flight 804 before the batteries run out on the pinger, that will help crews to find them. And now, France is joining the under water search as Egypt rejects claim by Greece that the aircraft swerved moments before it vanished.

CNN's Ian Lee is following this all live in Cairo, Egypt. Ian, it's good to have you with us this morning.

So, first, let's talk about the plane's last moments. Greece claiming that the plane swerved, but Egypt rejecting that claim. What more can you tell us about that and why?

IAN LEE, CNN CORRESPONDENT: Yes, they were really focusing, George, on the final minutes of the flight where the Greek defense minister said that radar was detecting the plane made a 90-degree turn and a 360-degree turn in the final moments, as well as descending thousands of feet.

But the Egyptian officials and aviation official came out and said that wasn't the case. That, in fact, the plane was cruising at 37,000 feet. It was into Egyptian air space for a minute and that's when things disappeared. It is up to finding the black boxes to determine what actually happened.

And there is a ticking clock here because the battery lasts about a month on the black boxes to send out the ping. They do need to find those quickly. Egyptian officials are also asking Greek and French officials to hand over information about the flight as the investigation moves forward and try to determine what exactly happened.

We are also hearing as well from Egyptian officials and from family members that Egyptian officials have asked them to present themselves so they can take DNA testing because that is going to be the way that probably a lot of the bodies are identified and handed over to the loved ones for their burial.

HOWELL: And what do you think of the investigations and many times one group says one thing and another one says another? When it comes to the families, they want the information and precise. You imagine that it's difficult for them to hear any twists and turns.

Ian Lee for us -- thank you so much.

KOSIK: All right. Let's get an early start on your money. Dow futures are slightly higher right now, following gains in Europe. Asian stock markets closing lower overnight. We are watching oil slip at $48 a barrel.

Take a look at how the Dow is doing this year. After sinking to lows in February, the market rallied. But now, it seems to be stuck in neutral, right around that 17,500 level, where the average began the year. Oil prices has rebounded. Worries of slow growth in China have subsided.

A bad corporate earning season is over, and even concerns about the Federal Reserve's next interest rate hike have been priced into the market. So, analysts there isn't much out there to move stocks any higher. United Kingdom's vote next month to leave the eurozone is the next mover for stocks.

If you want to become a multimillionaire, listen up. The key to success is hard work and family values. A new survey from U.S. Trust found that ambition, hard work and family upbringing were the three most important factors for success among high net worth individuals. Respondents even say this influences were much more important than connections or innate talent.

And many in the survey are self-made millionaires. Seventy-seven percent say they grew up in families that were middle class or lower. Nineteen percent say they were poor.

And I like this survey because it's kind of a shoutout to those strict disciplinarian parents who say, "Do your homework, and get your education." Eighty percent said they had those firm disciplinarians in their life who sort of guided them to get that good education.

HOWELL: It's not a bad thing.

KOSIK: It's not at all.

HOWELL: EARLY START continues right now.